4/4/2023

Strategy
Implementation

Learning Objectives
Describe the major issues that impact successful strategy
Describe
implementation

Explain how you would develop programs, budgets, and

Explain
procedures to implement strategic change

List the stages of corporate development and the structure that

List
characterizes each stage

Explain Explain the link between strategy and staffing decisions

Discuss Discuss how leaders manage corporate culture

Utilize an action planning framework to
implement an organization’s MBO and
Utilize TQM initiatives

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• Strategy
implementation
• the sum total of all
Strategy activities and
Implementation choices required
(1 of 2) for the execution of
a strategic plan

Who are the people to carry out

the strategic plan?

Strategy What must be done to align

Implementation company operations in the new
(2 of 2) intended direction?

How is everyone going to work

together to do what is needed?

10-5

Took more time than planned

Unanticipated major problems

Ten Common
Strategy
Ineffective coordination
Implementation
Problems (1 of 2)
Competing activities and crises
created distractions

Employees with insufficient

capabilities

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Lower-level employees were

inadequately trained

Uncontrollable external
environmental factors
10 Common
Strategy Poor departmental leadership
Implementation and direction
Problems (2 of 2)
Key implementation tasks and
activities were poorly defined

The information system

inadequately monitored activities

10-7

• Program
• a collection of tactics
where a tactic is the
individual action taken by
Developing the organization as an
Programs, element of the effort to
Budgets, accomplish a plan
and
Procedures • The purpose of a program or
a tactic is to make a strategy
action-oriented.

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Timing tactic
Timing • deals with when a
Tactics: company implements a
strategy
When to
Compete First mover
(1 of 2) • first company to
manufacture and sell a
new product or service

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Timing Tactics: When

to Compete (2 of 2)
• Late movers
• may be able to imitate the technological
advances of others, keep risks down by
waiting until a new technological standard
or market is established, and take
advantage of the first mover’s natural
inclination to ignore market segments

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Market location tactic

• deals with where a company
Market implements a strategy

Location Offensive tactic

• usually takes place in an
Tactics: established competitor’s market
location
Where to Defensive tactic
Compete • usually takes place in the firm’s
own current market position as a
defense against possible attack by
a rival

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Frontal assault (chính diên)

Flanking maneuver (mạn sườn)
Offensive Bypass attack (sân sau)
Tactics Encirclement (tổng lực, bao vây)

Guerilla warfare (du kich)

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Raise structural Increase expected

Defensive
barriers retaliation

Tactics

Lower the inducement

for attack

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Planning a budget is the last

real check a corporation has
on the feasibility of its
selected strategy.
Budgets
and
Procedures
Procedures
detail the various
activities that must be standard operating
carried out to complete a procedures
corporation’s programs

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• Synergy
• exists for a divisional
corporation if the return
on investment is greater
Achieving than what the return
Synergy would be if each division
were an independent
business

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Shared know-how

Coordinated strategies
Six Forms Shared tangible resources
of
Economies of scale or scope
Synergy
Pooled negotiating power

New business creation

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Structure Follows Strategy

• Structure Follows Strategy
• changes in corporate strategy lead to changes in
organizational structure

1. New strategy is created.

2. New administrative problems emerge.
3. Economic performance declines.
4. New appropriate structure is created.
5. Economic performance rises.

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Stages of Corporate Development

I. Simple Structure
• Flexible and dynamic
II. Functional Structure
• Entrepreneur is replaced by a team of managers
III. Divisional Structure
• Management of diverse product lines in numerous industries
• Decentralized decision making
IV. Beyond SBU’s
• Matrix
• Network

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• Matrix structures
• functional and
Flexible Types product forms
of
Organizational
are combined
Structures (1 simultaneously
of 4) at the same
level of the
organization

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Matrix Structure

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Flexible Types of Organizational

Structures (2 of 4)

• Ideas need to be cross-fertilized

Conditions across projects or products.
for matrix • Resources are scarce.
structures • Abilities to process information
and to make decisions needs to
include: be improved.

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Flexible Types of Organizational

Structures (3 of 4)

Three distinct • Temporary cross-

phases of functional task forces
matrix
• Product/brand
structure
management
development
include: • Mature matrix

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Flexible Types of Organizational

Structures (4 of 4)
• Network Structure
• virtual elimination of in-house business
functions

• Virtual organization
• Composed of a series of project groups or
collaborations linked by constantly changing
non-hierarchical, cobweb-like electronic
networks

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Figure 10-1: Network Structure Figure

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• Cellular/Modular Structure
• composed of cells (self-managing teams,
autonomous business units, etc.) which can
operate alone but which can interact with
other cells to produce a more potent and
competent business mechanism
• Beginning to appear in firms that are focused on
rapid product and service innovation.

Cellular/Modular Organization:
A New Type of Structure?

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Figure 10-2: Geographic Area Structure

for an MNC

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Blocks to Changing Stages

• Internal
• Lack of resources
• Lack of ability
• Refusal of top management to delegate
• External
• Economic conditions
• Labor shortages
• Lack of market growth

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Loyalty to comrades
Blocks to Task oriented
Changing
Stages
(Entrepreneurs) Single-mindedness

Working in isolation

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Table 10-2: Organizational Life Cycle

• Organizational life cycle
• describes how organizations grow, develop, and decline

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Reengineering and
Strategy Implementation
• Reengineering
• the radical redesign of business
processes to achieve major gains in
cost, service, or time
• effective program to implement a
turnaround strategy

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Principles for Reengineering

(1 of 2)
• Organize around outcomes, not tasks.
• Have those who use the output of the process
perform the process.
• Subsume information-processing work into real
work that produces information.
• Treat geographically-dispersed resources as
though they were centralized.

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Principles for Reengineering (2 of 2)

• Link parallel activities instead of

integrating their results.
• Put the decision point where the work is
performed and build control into the
process.
• Capture information once and at the
source.

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Designing Jobs to
Implement Strategy (1 of 2)
• Job design
• the study of individual tasks in an attempt to make
them more relevant to the company and to the
employees
• Job design techniques:
• Job enlargement
• combining tasks to give a worker more of the same
type of duties to perform
• Job rotation
• moving workers through several jobs to increase variety

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Designing Jobs to
Implement Strategy (2 of 2)
• Job characteristics
• using task characteristics to improve
employee motivation
• Job enrichment
• altering the jobs by giving the worker
more autonomy and control over
activities

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Centralization versus
Decentralization
• Product group structure
• enables the company to introduce and manage a similar
line of products around the world
• enables the corporation to centralize decision- making
along product lines and to reduce costs

• Geographic area structure

• allows the company to tailor products to regional
differences and to achieve regional coordination

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Staffing and Leading

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“It is one thing to lose excess employees after

a merger, but it is something else to lose
highly skilled people who are difficult to
replace. In a study of 40 mergers, 90% of the
acquiring companies in the 15 successful
mergers identified key employees and
targeted them for retention within 30 days
after the announcement. In contrast, this task
was carried out only in one-third of the
unsuccessful acquisitions. To deal with
integration issues such as these, some
companies are appointing special integration
managers to shepherd companies through the
implementation process” 10-38

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Integration Managers

Prepare a competitive profile of the company in terms of

its strengths and weaknesses.

Draft a profile of what the ideal combined company

should look like.

Develop action plans to close the gap between actual and

ideal.

Establish training programs to unit the combined company

and make it more competitive.

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Characteristics of successful
integration managers include:
1. Deep knowledge of the
acquiring company
2. Flexible management style
Staffing 3. Ability to work in cross-
functional teams
4. Willingness to work
independently
5. Sufficient emotional and
cultural intelligence to work in
a diverse environment

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Staffing Follows Strategy

• One way to implement a company’s
business strategy, such as overall low
cost, is through training and
development.
• Executive characteristics influence
strategic outcomes for a corporation.

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Matching • Executive type

the Manager • executives with a
to the particular mix of skills
Strategy and experiences
• paired with a specific
corporate strategy

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CEO Types

Dynamic Analytical
Cautious
industry portfolio
profit planner
expert manager

Turnaround Professional
specialist liquidator

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Selection and Management

Development
Executive succession
• process of replacing a key top manager

Succession planning
• identifying candidates below the top layer of
management
• measuring internal candidates against external
candidates
• providing financial incentives
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Identifying Abilities and Potential

Performance Assessment
Job rotation
appraisal centers
• systems to • evaluate a • ensures
identify good person’s employees are
performers suitability for gaining a mix
with an advanced of experience
promotion position to prepare
potential them for
future
responsibilities

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Leading

Implementation

• involves leading and coaching people to use their abilities and

skills most effectively and efficiently to achieve organizational
objectives

Without direction, people tend to do work according

to personal views of what tasks should be done, how,
and in what order.

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Managing Corporate Culture

Strong cultures are resistant to change.

Optimal culture supports mission and strategies.

Management must evaluate what a particular change in strategy

means to the corporate culture, assess whether a change in
culture is needed, and decide whether an attempt to change the
culture is worth the likely costs.

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Strategy-Culture Compatibility

Can the culture be easily

Is the proposed strategy
modified to make it more
compatible with the
compatible with the new
company’s current culture?
strategy?

Is management willing and

able to make major Is management still
organizational changes and committed to
accept probable delays and implementing the strategy?
a likely increase in costs?

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Strategy–Culture Compatibility

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Managing Cultural Change

Through Communication

Companies in which major cultural changes

have successfully taken place had the
following characteristics in common:
• The CEO and other top managers had a strategic
vision of what the company could become and
communicated that vision to employees at all levels.
• The vision was translated into the key elements
necessary to accomplish that vision.

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Methods of Managing the

Culture of an Acquired Firm

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Managing Diverse Cultures Following

an Acquisition

The choice of which

method to use
should be based on:

How much members

How attractive they
of the acquired firm
perceive the culture
value preserving
of the acquirer to be
their own culture

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Managing Diverse Cultures Following

an Acquisition
Integration

• involves relatively balanced give-and-take of cultural

and managerial practices between merger partners
• no strong imposition of cultural change on either
company

Assimilation

• involves domination of one organization over the other

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Managing Diverse Cultures Following

an Acquisition (3 of 3)
Separation
• characterized by separation of the two
companies’ cultures

Deculturation
• the disintegration of one company’s culture
resulting from unwanted and extreme pressure
from the other to impose its culture and practices
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• Action plan
Action • states what actions are
Planning going to be taken, by
whom, during what time
frame, and with what
expected results

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Action Planning

Specific actions to be
Dates to begin and end Person responsible for
taken to make the
each action carrying out each action
program operational

Person responsible for

monitoring the Expected financial and
timelines and physical consequences Contingency plans
effectiveness of each of each action
action

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Importance of an Action Plan

Serves as a link between strategy

formulation and evaluation and control.

Specifies what needs to be done

differently from current operations.

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Importance of an Action Plan

Helps in both the appraisal of performance

and identification of any remedial actions

Explicit assignment of responsibilities for

implementing and monitoring the programs
may contribute to better motivation

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Table 11-1: Example of an Action Plan

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